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Bitcoin (BTC) price is in the process of testing the $23,000 threshold as Wall Street breaks the chain of gains for 3 consecutive sessions.
Market data shows that bulls and bears are vying for control of the market while the trading price range is narrowing. Bitcoin closed the week at its highest level since mid-June a day earlier, recording its strongest monthly gain since hitting its all-time high from 2021.
However, the ability of the market to sustain and set higher highs is what matters. Despite retrieving key trendlines like the 200-week moving average (MA) and fair value, Bitcoin is still unable to break out of the range until it can generate a new weekly candle that breaks out of the range. these levels.
Material Indicators, explained.
“For trend confirmation, BTC needs to make a breakout above the 200-week and 50-month MAs, but only if all candles are above these lines will the downtrend be invalidated. Therefore, the $22.880 and $21.965 levels are important levels that the bulls need to hold if they want to continue pushing the price higher.”
Meanwhile, analyst Rekt Capital, a blockchain KOL on Twitter forecasts that Bitcoin will attempt to retest the 200-week MA as near-term support. Concurring with this view, Zain Haider, co-founder of Blockchain platform Answerly added: “Bitcoin may be struggling to break above $24,000, but the weekly candle closed above the 200-week MA and that This could improve technical sentiment significantly.”
With the US stock market only trending slightly lower on the day, Bitcoin and altcoins are currently under very little macro pressure affecting price action.
Researchers at on-chain analytics firm Glassnode warn the situation remains somewhat uncertain, as the market still reflects a bearish mood after months in a downtrend.
“Both Bitcoin and Ethereum have seen rebounds over the past week, as the market fell into oversold conditions and was fueled by risk-on sentiment following the FOMC meeting in July. However, demand for on-chain transactions is still lackluster and this upward momentum has not yet shown a convincing signal that it can continue in the current market conditions.”
However, on-chain data still represents only “part of the picture” and as such, investors and users alike are waiting to see if the signs of growth can persist. .
The altcoin market is also starting to fall back with most tokens in the red. After a strong rally yesterday, Filecoin (FIL) has led the current decline, recording a 15.8% correction in 24 hours. It was followed by Internet Computer (ICP) and Arweave (AR) with a decrease of 9%. Other altcoins such as Lido DAO (LDO), Polkadot (DOT), EOS (EOS) also showed a decline of over 5% on the day.
Ethereum (ETH) has also lost the $1,700 level, close to the $1,600 area and is currently trading around $1,614, down 4.7% in 24 hours. However, on the weekly timeframe, ETH is still showing strong recovery momentum with a 13.5% gain.
Tokens in the top 10 by market capitalization are also in the red with a 4-5% drop in the 24-hour timeframe. However, these cryptocurrencies are still holding a 7 – 12% return on a one-week timeframe.
Investor sentiment in the market has also cooled down. The FGI (Greed and Fear) index of the crypto market is still in the Fear zone but has dropped to 31 points.
US stocks fell in the opening session of August, as some investors questioned whether the recent rally would continue. At the end of trading session on August 1, all three major indexes broke their streak of 3 consecutive gaining sessions, with the S&P 500 index down 0.28% to 4,118 points, Nasdaq Composite losing 0.18% to 12,368 points and Dow Jones dropped 46 points to 32,798.
Dow Jones fell even as Boeing shares jumped 6.13% after the US government approved a plan to continue delivering Boeing 787 aircraft.
However, a better-than-expected manufacturing report supported sentiment, with AMD and Nvidia shares recovering. The report also shows that prices are declining, a positive development in the context of high inflation.
This week, investors have more economic data and new business reports from big businesses like Caterpillar, PayPal and Starbucks. The US jobs report for July from the Bureau of Labor Statistics will provide more details on the labor market. Stable job growth will make economists say that the US is not currently in a recession, despite two consecutive quarters of negative GDP.
Yields on 10-year US government bonds continued to fall on Monday, as investors worried about an economic slowdown. This is important because it affects mortgage rates as well as other consumer and business loans.
Gold prices hovered near a one-month high on Monday (August 1) as the dollar weakened, with investors awaiting economic data that could influence the direction of policy tightening. US Federal Reserve (Fed). Closing the session, the spot gold contract advanced 0.37% to $1,771 an ounce, having previously hit its highest since July 5 at $1,774 an ounce. Gold futures added 0.4 percent to $1,789 an ounce.
On the same day, a sharp drop in oil prices as weak production data from China and Europe weighed on the demand outlook, while investors braced for this week’s meeting from OPEC and other oil producers. other top crude oil exporters in terms of supply. Ending the session, the Brent oil contract dropped 3.94 USD (equivalent to 3.79%) to 100 USD/barrel. The WTI oil contract lost $4.73 (or 4.8%) to $93.8 per barrel.
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